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25.06.2024 13:00:29 - dpa-AFX: EQS-News: ESPG publishes consolidated financial statements for 2023: financial performance characterised by challenging market environment (english)
ESPG publishes consolidated financial statements for 2023: financial
performance characterised by challenging market environment
EQS-News: ESPG AG / Key word(s): Annual Report/Annual Results
ESPG publishes consolidated financial statements for 2023: financial
performance characterised by challenging market environment
25.06.2024 / 13:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
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ESPG publishes consolidated financial statements for 2023: financial
performance characterised by challenging market environment
* Increase in operating income due to vacancy reduction and rent increases
Cologne, 25 June 2024: The European Science Park Group (ESPG), a real estate
company specialising in science parks, today published its annual financial
report for 2023. This was given an unqualified auditors' opinion by RSM
Ebner Stolz. ESPG can look back on a solid financial year overall, despite
the negative development of net income. In an extraordinarily challenging
market environment, the value of the Science Park portfolio remained stable
and income increased significantly by around 25 per cent thanks to new
lettings and rent increases. However, in spite the operating successes, both
the consolidated result and the cash flow from operating activities are
negative - in particular due to increased one-off costs and interest.
Dr Ralf Nöcker, Management Board Member of ESPG AG: "The 2023 property year
was very challenging for us. Science parks remain attractive to tenants and
have established themselves as a high-performing asset class. We are proud
of these successes. However, the market environment remains extraordinarily
challenging, which is reflected not least in the development of earnings and
cash flow. We will continue to work on these issues intensively."
Income growth due to new lettings and rent increases
The operative income totalled EUR 15.7 million in the 2023 reporting year,
significantly higher than in the same period of the previous year (2022: EUR
12.5 million). The increase of around 25 per cent is due to letting
successes and inflation adjustments to existing rents as well as one-off
compensation payments and cost transfers. The average net cold rent rose by
8.0 per cent to EUR 9.89/m2 in December 2023 (December 2022: EUR 9.16/m2).
The vacancy rate also decreased significantly to 17.0 per cent. The new
lettings included particularly innovative companies, such as the German
Aerospace Centre (DLR), the German med-tech pioneer Alaxo and the Japanese
LED developer Nichia.
Earnings before interest and taxes (EBIT) fell to EUR 3.9 million (2022: EUR
11.8 million). The sharp decline compared to the previous year is due in
particular to the lack of portfolio revaluations as a result of the negative
market development in 2023 and high one-off expenses, for example in
connection with the extension of the corporate bond. The earnings figures
for 2022 included value increases of EUR 6.9 million, which significantly
limit comparability. This is also reflected in the development of the
consolidated result, which fell particularly sharply from EUR 2.0 million in
the previous year to EUR -7.0 million.
Strong rental growth leads to stable portfolio valuation
In 2023, the assets in the consolidated balance sheet showed constant
figures for both non-current and current assets, which underlines the
stability of the company. The valuation of the Science Park portfolio
remained stable: the value of the property portfolio increased slightly to
EUR 228.6 million (31 December 2022: EUR 228.5 million). The positive
performance in an extremely challenging environment is due in particular to
the significant increase in rental income. The net loan-to-value (net LTV)
ratio reached 74.8% at the end of the financial year in accordance with the
calculation basis of the bond terms and conditions. It was therefore below
the maximum value, even though the test for 2023 was suspended as a
precautionary measure by a resolution of the bondholders' meeting.
Outlook for 2024
Despite the ongoing challenging market environment, ESPG is aiming to
continue its stable business performance over the course of 2024. "We have
managed to significantly reduce the vacancy rate in our properties in recent
months and have attracted innovative tenants. We are also seeing strong
ongoing demand for our portfolio. Both this and the expected further letting
successes demonstrate our strength in the market for science parks," says
Markus Drews, Management Board Member of ESPG AG.
About ESPG
The European Science Park Group (ESPG) is a real estate company specialising
in science parks. The company's focus is on the development of science
parks, predominantly characterised by tenants from future-oriented sectors
such as life sciences, green technologies or digital transformation, which
benefit from their proximity to each other and their direct proximity to
universities, hospitals or research locations. ESPG's portfolio already
comprises 16 science parks across Europe with a total area of 126,000 square
metres. The sites are generally located outside metropolises, in areas that
are considered science clusters or have a high concentration of innovative
companies.
Press contact:
Jan Hutterer
T +49 40 60 91 86 83
M +49 172 3462831
espg@kirchhoff.de
---------------------------------------------------------------------------
25.06.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
End of News EQS News Service
---------------------------------------------------------------------------
1932683 25.06.2024 CET/CEST
performance characterised by challenging market environment
EQS-News: ESPG AG / Key word(s): Annual Report/Annual Results
ESPG publishes consolidated financial statements for 2023: financial
performance characterised by challenging market environment
25.06.2024 / 13:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
ESPG publishes consolidated financial statements for 2023: financial
performance characterised by challenging market environment
* Science Park portfolio shows stable valuation in 2023: slight increase
in portfolio value to EUR 228.6 million, bond LTV covenant met
* Increase in operating income due to vacancy reduction and rent increases
* Negative consolidated net income of EUR -7.0 million despite positive
operative development due to increased financing costs and lack of
valuation effects from the portfolio
* Ongoing challenging conditions for business development in the 2024
property year
Cologne, 25 June 2024: The European Science Park Group (ESPG), a real estate
company specialising in science parks, today published its annual financial
report for 2023. This was given an unqualified auditors' opinion by RSM
Ebner Stolz. ESPG can look back on a solid financial year overall, despite
the negative development of net income. In an extraordinarily challenging
market environment, the value of the Science Park portfolio remained stable
and income increased significantly by around 25 per cent thanks to new
lettings and rent increases. However, in spite the operating successes, both
the consolidated result and the cash flow from operating activities are
negative - in particular due to increased one-off costs and interest.
Dr Ralf Nöcker, Management Board Member of ESPG AG: "The 2023 property year
was very challenging for us. Science parks remain attractive to tenants and
have established themselves as a high-performing asset class. We are proud
of these successes. However, the market environment remains extraordinarily
challenging, which is reflected not least in the development of earnings and
cash flow. We will continue to work on these issues intensively."
Income growth due to new lettings and rent increases
The operative income totalled EUR 15.7 million in the 2023 reporting year,
significantly higher than in the same period of the previous year (2022: EUR
12.5 million). The increase of around 25 per cent is due to letting
successes and inflation adjustments to existing rents as well as one-off
compensation payments and cost transfers. The average net cold rent rose by
8.0 per cent to EUR 9.89/m2 in December 2023 (December 2022: EUR 9.16/m2).
The vacancy rate also decreased significantly to 17.0 per cent. The new
lettings included particularly innovative companies, such as the German
Aerospace Centre (DLR), the German med-tech pioneer Alaxo and the Japanese
LED developer Nichia.
Earnings before interest and taxes (EBIT) fell to EUR 3.9 million (2022: EUR
11.8 million). The sharp decline compared to the previous year is due in
particular to the lack of portfolio revaluations as a result of the negative
market development in 2023 and high one-off expenses, for example in
connection with the extension of the corporate bond. The earnings figures
for 2022 included value increases of EUR 6.9 million, which significantly
limit comparability. This is also reflected in the development of the
consolidated result, which fell particularly sharply from EUR 2.0 million in
the previous year to EUR -7.0 million.
Strong rental growth leads to stable portfolio valuation
In 2023, the assets in the consolidated balance sheet showed constant
figures for both non-current and current assets, which underlines the
stability of the company. The valuation of the Science Park portfolio
remained stable: the value of the property portfolio increased slightly to
EUR 228.6 million (31 December 2022: EUR 228.5 million). The positive
performance in an extremely challenging environment is due in particular to
the significant increase in rental income. The net loan-to-value (net LTV)
ratio reached 74.8% at the end of the financial year in accordance with the
calculation basis of the bond terms and conditions. It was therefore below
the maximum value, even though the test for 2023 was suspended as a
precautionary measure by a resolution of the bondholders' meeting.
Outlook for 2024
Despite the ongoing challenging market environment, ESPG is aiming to
continue its stable business performance over the course of 2024. "We have
managed to significantly reduce the vacancy rate in our properties in recent
months and have attracted innovative tenants. We are also seeing strong
ongoing demand for our portfolio. Both this and the expected further letting
successes demonstrate our strength in the market for science parks," says
Markus Drews, Management Board Member of ESPG AG.
About ESPG
The European Science Park Group (ESPG) is a real estate company specialising
in science parks. The company's focus is on the development of science
parks, predominantly characterised by tenants from future-oriented sectors
such as life sciences, green technologies or digital transformation, which
benefit from their proximity to each other and their direct proximity to
universities, hospitals or research locations. ESPG's portfolio already
comprises 16 science parks across Europe with a total area of 126,000 square
metres. The sites are generally located outside metropolises, in areas that
are considered science clusters or have a high concentration of innovative
companies.
Press contact:
Jan Hutterer
T +49 40 60 91 86 83
M +49 172 3462831
espg@kirchhoff.de
---------------------------------------------------------------------------
25.06.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS
News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The EQS Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.eqs-news.com
---------------------------------------------------------------------------
Language: English
Company: ESPG AG
Kleingedankstraße 11a
50677 Köln
Germany
Phone: +49 (0)22180149800
Internet: https://espg.space
ISIN: DE000A2NBY22
WKN: A2NBY2
Listed: Regulated Unofficial Market in Dusseldorf, Frankfurt
EQS News ID: 1932683
End of News EQS News Service
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1932683 25.06.2024 CET/CEST
